Markets in Details: 10 December 2018

10 December, 2018

News

  • More signs of economic slowdown were seen as China reported slower factory-level and consumer inflation due to sluggish demand. The PPI rose to 2.7, the slowest in two years.
  • U.S. Ambassador to China has been summoned by China concerning the arrest of fellow Chinese citizen and Huawei CFO Meng Wanzhou. The tension created by caused heavy financial losses in financial markets last week.

The focus of attention

  • This week the UK House of Commons will vote on the Brexit deal on Tuesday and the U.S. is due to release CPI on Wednesday. Retail sales and industrial production is expected from China on Friday.
  • EU leaders will discuss the budget for 2021-2027 in a two-day meeting and would probably discuss Brexit if the UK government loses its vote on December 11.

Expected events

  • 07:00 GMT Germany will release the latest Trade Balance data.
  • 09:30 GMT UK will release 3Q GDP figures, Manufacturing Production and Industrial Production.
  • 15:00 GMT U.S. will release the latest JOLTs Job Openings report for October.

Technical Analysis 

  • EUR USD was able to close above its downtrend line marking a positive tone for the third straight session. Expect the pair to test the 1.1471 resistance line in the short-term for it to create a bullish extension or stall and reverse into a downtrend.
  • Dow Jones Dow immediately found resistance at 26000 to race back down the previous week. Now all eyes are on the 24243-support line to see whether it is strong enough to enable a bounce or counter-trend move. Failing this support line would be very negative in the short-term as it will fuel the next phase of downtrend.
  • GBP USD is still in a downtrend although keeping above its 1.2697 support line. Overcoming the week-long resistance at 1.2805 would be a positive and this scenario could play out in the coming week.


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